Reliance handset at Rs 1,500
BS Corporate Bureau in Mumbai | February 21, 2006 02:28 IST Rediff
Lowering the entry-level for consumers in the telecommunications space, private
telephony major
Reliance Infocomm has cut the costs of handsets by a whopping 40 per cent for
black and white
instruments and 15 per cent for the colour-enabled ones.
This follows the company's launch of the One India campaign and the SMS
schemes. Reliance Infocomm
also plans to launch an array of new handsets in the country.
The company is offering its base model - an LG 2340 black and white handset -
for Rs 1,500, a
40-per cent price cut from the previous Rs 2,500.
The slash in prices range from handset to handset, with the overall reduction
ranging from 15 to
40 per cent, according to sources in the company.
Reliance is also offering a 15-per cent reduction on LG colour handsets, mainly
for an LG 5340,
which is available for Rs 4,500. After the 15-per cent reduction the price
would come down to Rs
3,800, they said.
According to telecom analysts, the slash in handset prices will have a "great
impact in the Indian
market and this reduction will not only force leading handsets manufacturers
like Nokia and
Motorola to follow suit, but also propel the Indian market to a completely new
and higher level of
growth."
Reliance Infocomm had earlier launched an India One scheme that offered calls
for Re 1 across the
country. The move helped the company in adding over one million subscribers
each, in December 2005
and January 2006.
At present, the rate of acquisitions in the Indian market is at four million
new subscribers per
month. With the latest initiative, Reliance expects the Indian market to catch
up with its Chinese
counterpart, with the net subscriber numbers reaching a figure of six million
per month by the
middle of this year.
A Reliance Infocomm official said, "In the coming months, the company will
launch a wide range of
products, offering high value and quality to the consumers across all the
segments.
These would include low-end handsets as well as multimedia-enabled colour
handsets, to leverage
the capabilities of the CDMA data network".
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